Strickland: cutting my funding could be short-sighted

Tuesday

Apr 28, 2009 at 12:01 AMApr 28, 2009 at 10:56 AM

Gov. Ted Strickland likes to point out how some state agencies are being cut to 80 percent of previous funding in the upcoming budget, as well as how the state is "living within our means" during the recession.

Gov. Ted Strickland likes to point out how some state agencies are being cut to 80 percent of previous funding in the upcoming budget, as well as how the state is “living within our means” during the recession.

But he said last week it could be “penny-wise and pound-foolish” not to increase funding for his own office from 80 percent of fiscal 2009 funding, which it was in his version of the budget, to 90 percent in the House-modified plan.

“I’m certainly willing to take a 10-percent cut, but much of the work that’s being done by the governor’s office is going to have a profound effect upon every agency of government,” Strickland said when asked about the change.

“I think it’s important for us, especially during this critical budget period, to have sufficient personnel, time and expertise available to get the work done.”

Spokeswoman Amanda Wurst has said the administration used the wrong funding amount for the governor’s office in the budget it submitted in February. Thus, the House version adds $640,000 in each of the next two fiscal years.

Most of the amount goes to staff payroll costs, and there would have to be staff reductions or pay cuts if the additional money isn’t added, Wurst said. The governor’s office has 72 employees, with a total proposed budget of $3.5 million a year.

The change in the House version of the budget was unveiled the same week as Strickland announced further spending restrictions at state agencies -- which also would apply to his office -- to keep the current budget in balance.

Asked last week whether additional cuts will be needed before the current budget expires June 30, Strickland said, “I think it’s possible."

"We’re really looking at the tax returns to see exactly where we stand because the revenue that has come in the last two-to three months has been below projections," he said. "I just felt like it was important to do everything we could to be as cautious as we could be in anticipation of a possible shortfall as we come to the end of the budget period. I am concerned. I just don’t know exactly what we may face right now.”

State tax receipts through March were $195.8 million, or 1.6 percent below estimates that were revised just before Christmas -- even after three rounds of budget cuts and other adjustments last year totaling $1.9 billion.

State Budget Director J. Pari Sabety has said it won't be clear whether additional budget cuts will be necessary before June 30 until data from recent state income-tax filings are available.